Overview:

- FERC orders electric grid operator to develop rules for colocating data centers at gas-fired and nuclear power plants.
- Oracle said talks for equity backing of its Michigan data center project remain on schedule.
- Gaines Township cancels a public hearing on Microsoft's data center rezoning request after hundreds of residents exceeded the 250-person venue capacity.

💡 Federal regulators order grid operator to develop data center colocation rules at power plants The Federal Energy Regulatory Commission ordered electric grid operator PJM Interconnection to develop rules for colocating data centers at gas-fired and nuclear power plants, a “major victory” for companies like Constellation Energy and Vistra. The grid operator has 60 days to propose three new transmission services for colocated loads limiting energy withdrawals. FERC mandated a Jan. 19 report on integrating large loads and expedited interconnection for shovel-ready projects. Industry groups called the decision a positive step. 📍 Source: Utility Dive

💡Developer proposes data center, gas plant for Marshall’s Industrial Park Alterra Development has agreed to purchase 270 acres in Marshall’s Brooks Industrial Park for $1.12 million to build a technology park featuring a gas generation plant and data center. The project could bring 300-500 skilled jobs and generate millions in tax revenue. Construction won’t begin until due diligence completes by third quarter 2026. Alterra plans wetland mitigation and will use closed-loop cooling to minimize water usage while contributing energy to the grid. 📍 Source: WWMT-TV

💡 Oracle says Michigan data center financing on track after Blue Owl Talks stall Oracle said talks for equity backing of its Michigan data center project remain on schedule, excluding Blue Owl Capital after failed negotiations. The over 1-gigawatt Saline Township facility, part of Oracle-OpenAI’s Stargate initiative, aims to begin construction in early 2026. Blue Owl couldn’t agree on terms matching its other Oracle commitments. Oracle shares have dropped 40% since mid-September amid scrutiny of its AI infrastructure spending and OpenAI ties. Related Digital selected an unnamed equity partner. 📍 Source: Reuters/Yahoo Finance

💡 Hundreds pack Gaines Township meeting, force cancellation of Microsoft data center hearing Gaines Township canceled a public hearing on Microsoft’s data center rezoning request after hundreds of residents exceeded the 250-person venue capacity. Microsoft seeks to rezone 316 acres purchased from Steelcase for $45.3 million to support a data center. Residents oppose the project, citing environmental concerns about electricity and water usage. Similar protests have occurred statewide, with critics arguing tech companies target rural communities. Michigan’s 2024 tax breaks for data center equipment have attracted increased interest. 📍 Source: MLive

💡 Grand Rapids commissioner calls for proactive data center zoning updates Grand Rapids Commissioner Marshall Kilgore requested proactive data center zoning updates, citing unique challenges from their energy, water and infrastructure demands. Planning Director Kristin Turkelson confirmed the city is analyzing current ordinances, though data centers aren’t specifically defined. The request follows constituent concerns as nearby communities address potential projects. Sparta updated ordinances Monday for better control, while Microsoft pursues projects in Gaines and Dorr townships. Lowell’s proposed data center faced community backlash over resource impacts. 📍 Source: WOOD-TV

💡Saginaw takes preemptive action against data centers Saginaw City Council voted 5-4 to draft moratorium language blocking data center construction while officials research the issue and gather community input. No data centers have been proposed in Saginaw, but Councilwoman Carly Rose Hammond said the city needs time to investigate implications before developments are announced. The measure references concerns from other Michigan communities about environmental impacts and electricity demands. Four council members questioned whether the preemptive moratorium is necessary. A timeline for finalizing the moratorium language remains unclear. 📍 Source: WJRT-TV

Dustin Blitchok brings extensive editorial leadership experience, having served as an editor at Benzinga and Metro Times, and got his start in journalism at The Oakland Press. As a longtime Detroit resident and journalist, he has covered a wide range of public interest stories, including criminal justice and government accountability.